DHFL Raises ₹1,375 Cr Via Securitisation Financing

Dewan Housing Finance Corporation Ltd on Tuesday said it has raised ₹1,375 crore from funds managed by Oaktree Capital Management, L.P. Oaktree is a leading global alternative investment management firm with assets under management of about $124 billion.

The transaction is structured using RBI’s Securitization Guidelines and involves securitisation of wholesale real estate project finance loans with security over a near-complete residential project in Mumbai, DHFL said in a statement.

Kapil Wadhawan, CMD, DHFL said, “We recently committed to expeditiously bring down our project finance exposure. Within less than two months of making the above commitment, the company has consummated the above transaction that reduces its project finance book by about 8 per cent. We will continue to focus on growing our retail lending franchise.”

Commenting on the transaction, Pedro Urquidi from Oaktree, said: “This first of its kind transaction in India is representative of how we methodically apply our multi-asset class, structuring, underwriting, investing and restructuring expertise to partner with Asian financial institutions to help them meet their objectives.

Gaurav Parasrampuria from Oaktree, said, “We...look forward to exploring more ways to help DHFL optimise its balance sheet.”

The transaction represents one of the largest investments in Indian residential real estate by an institutional investor. DHFL said it intends to meaningfully reduce its real estate project finance exposure through more such transactions in the future.